Magellen Industries is analyzing a new project. The data they have gathered to date is as follows:

Lower Bound

Expected Value

Upper Bound

Sales quantity

$9500$

$10000$

$10500$

Sales price per unit

$$9\mathrm{.}75$

$$10\mathrm{.}00$

$$10\mathrm{.}25$

Variable cost per unit

$$4\mathrm{.}80$

$$5\mathrm{.}20$

$$5\mathrm{.}60$

Fixed cost

$$15,000\mathrm{.}00$

$$18,000\mathrm{.}00$

$$21,000\mathrm{.}00$

Initial requirement for equipment: $$120,000$

Depreciation: Straight$-$line to zero over the four$-$year life of the project with no salvage value.

Required rate of return: $15\%$

Marginal tax rate: $35\%$

Reference: Ref. $11-3$

What is the sensitivity of the net present value to a $$1$ decrease in the variable cost per unit?

Question $6$ options:

$$17,189$

$$19,972$

$$18,557$

$$28,550$

$$17,888$